Did you know that a staggering 84% of Malaysians who save regularly only do so for the immediate term? Latest findings from the National Strategy for Financial Literacy 2019-2023 report has shown that savings are typically withdrawn by the end of the month to cover daily expenses, leaving nothing for long-term financial goals. One way to tackle this critical shortfall is to inculcate good money habits in children from a young age.
Hong Leong Bank has recently launched a pocket money app, the HLB Pocket Connect that is designed to help parents teach their children good money habits in a fun interactive way. Available to all HLB 3-in-1 Junior Account holders, it has three features namely Earn, Save and Spend which enable children to learn to be financially responsible under the guidance of their parents.
Start by assigning housework or tasks and have your child complete them for extra pocket money with the HLB Pocket Connect App. This will teach your child the meaning of earning in a practical way and that money does not grow on trees!
With the HLB Pocket Connect App, your child will be able to keep track of their pocket money and spending, while having the freedom to go cashless with their very own HLB Junior Debit Card. Your child is safer with a reloadable debit card than cash.
In the age of instant gratification, it’s easy to forget that good things take time and effort. Teach your child the value of money by having them set their own savings goal (from a pair of new sneakers to the latest video game), and gradually save towards it.
Although parents realise the importance of teaching their children money lessons, they might be faced with the challenge of finding a suitable tool that can help their children learn the basics of money in a real-world context. The HLB Pocket Connect App is the only junior account that comes with a savings account, a reloadable debit card and a high interest Fixed Deposit account.
Zalman Zainal, Chief Marketing and Communication Officer of HLB said, “We want to engage parents and empower kids, offering financial products that actually help kids learn and understand about responsible money management. Pocket Connect is an age-appropriate digital banking product that helps boost those money management lessons, while also providing children with the experience to understand them.”
In order to help parents learn more about educating their children on financial literacy, Hong Leong Bank and Hong Leong Islamic Bank had also organised a webinar, ‘Raising DuitSmart Kids in a Digital Era’ on 3 April 2021. For a recap of the webinar, watch the full video here.
The earlier parents learn the advantages of teaching money lessons to their children, the more financially savvy their children will come to be, a life skill that is crucial for gaining financial freedom. Malaysians tend to avoid discussing money that can be deemed as a sensitive subject which in turn contributes to our low financial literacy.